Head of Federation of Egyptian Banks Reveals Details of New Dollar Certificates
First Bank
Mohamed El-Etreby, the head of Federation of Egyptian Banks and Head of Banque Misr, unveiled the details of the targeted new dollar certificates to be launched today, Wednesday, with returns of up to 7% and 9%.
In a televised interview yesterday, Tuesday, he explained that the first dollar certificate, called "Elite," offers an annual return of 7%. It is a nominal certificate issued to Egyptians and foreigners, with interest paid quarterly in US dollars.
He clarified that holders of Elite certificate can borrow in Egyptian pounds up to 50% of the redemption value of the certificate, with a maximum of EGP 10 mn.
El-Etreby also pointed out that certificate holders can use the funds to purchase real estate, cars, or acquire new certificates, with redemptions being made in US dollars according to the terms and regulations set forth.
Furthermore, He stated that the second dollar certificate, called "Summit," targets a 9% annual return. This nominal certificate is also issued to Egyptians and foreigners, with the return being paid upfront for the first 3 years at an accumulative rate of 27% in Egyptian pounds.
He emphasized that both Egyptians and foreigners can purchase both certificates in denominations of 1000 US dollars and its multiples. The issuance date starts from the next working day after the deposit and serves as the basis for the return and redemption, in accordance with the terms and regulations.
El-Etreby clarified that these new certificates cannot be broken before a Maturity of 6 months from their issuance date, and he mentioned that the initiative is open-ended with no specified closing date.
He affirmed that the idea of the 9% interest certificates contributes to reducing expenses in US dollars, which reflects higher returns compared to the other dollar certificate with a 7% yield.
Regarding future plans, El-Etreby mentioned the possibility of considering certificates in other currencies like Euro, but they targeted US dollar initially due to the majority of transactions being conducted through it.
He highlighted that Egyptian banks possess strong financial positions and good profits, with significant growth rates. Customer deposits in foreign currency have risen from $47 bn in 2016 to $ 60 bn at present, and local currency deposits increased from EGP1.89 tn to EGP7.59 tn during the same period.
Banque Misr intends to launch the "Summit" and "Elite" savings certificates in US dollars for a duration of 3 years, and they will be available in its branches starting from Wednesday, July 26, 2023.
It is worth noting that the new dollar certificates are available for purchase through the bank's website, online banking platform, BM Online, as well as in branches both inside and outside of Egypt and ATMs network.
